USS Error and where to get advice?

RSTime

I am a deferred USS member for almost 10 years.

I have been requesting provisional benefits payable statements on a regular basis so that I could plan my retirement and based on this statements I took early retirement. I have set up my communications preferences on the web site to receive member news and updates, however, I do not seem to receive any updates (which is an issue as several significant changes have apparently been made to the scheme). My provisional retirement statements over the past few years (standard benefits) have provided information (pension per year, lump sum) on my expected benefits. I received a statement recently with a quote for retirement for July 2024 and the estimate was considerably less than expected/predicted from quotes in previous years (it was less than the quote for retirement in May 2023). I don't see how this is possible (for the standard benefits) as I have a defined benefit pension. The USS are adamant that the estimate is correct. I have checked the online modeller and the estimates are in line as to what I was expecting, it was the paper statement that seemed incorrect.

I am looking for someone who can check what my pension is actually worth and also what recourse I have if the USS have indeed made an error in my calculations. Can anyone recommend an advisor who specialises in the USS and who knows the rules and can ask the USS the right questions?

When I asked the USS about information on pension changes, they said I had to check the web site. Is there not a requirement to inform members of changes that will impact on them?

Has anyone else experienced similar issues with the USS?

Simes122

While a deferred member, are you taking your uss pension  before normal retirement age?  I think that’s the case from what you've said but just wanted to confirm.

USS have significantly and detrimentally changed the factors used to calculate the pension when taken early from 1 April this year.   They have also changed *detrimentally* the commutation factor used for conversion of pension to lump sum.

These changes have not been formally communicated to members as far as I’m aware.

A more recent amendment indicates that the ERF change will now be deferred until 1 Oct but this does not appear to affect the commutation rate changes.  Again I have seen no comms about this.  There are other changes that have been communicated - a one catchup payment of £215 and lump sum enhancement of £645 for those eligible but as yet it’s smoke and mirrors as to when or how that will be applied as it’s not in the calculators so very opaque as to how and if it’s been applied!

The changes are a shambles in terms of communications!

RSTime

Yes, am taking before normal retirement age.

Can they change the calculations like this without communicating to members, sounds outrageous, surely the standard pension cannot be changed? If I had known I would have cashed out before April 1st.

Simes122

Apparently they can change factors at their whim.

Worth making a complaint - say you’ve had quotations before and after 1 Apr and say you’d like to take on the prior terms given the failure to communicate.  

Voyager2002

Simes122 said:

Apparently they can change factors at their whim.

Worth making a complaint - say you’ve had quotations before and after 1 Apr and say you’d like to take on the prior terms given the failure to communicate.  

Since the complaint process seems to be highly technical, are there any sources of support for making a complaint effectively? 

bluenose1

I was going to take my pension April 24 but started it in Feb 24 as was advised on here that the USS Early Retirement Factors were reducing from April 24, that change has now been deferred until October 24.
However as I was also taking the maximum tax free lump sum it turned out  was still better taking it in Feb 24 as USS without communication reduced the commutation rates from April 24.

In your situation if the quote is just for the DB pension with 3 x lump sum tax free pension then I am not sure why it has reduced as the reduced ERFs aren’t being implemented until October 24.
If you have asked for a quote is for the maximum tax free cash lump then it would be reduced based on the commutation rates being reduced from April 24.

In the past I found ringing the central USS team helped as they were  knowledgeable with my queries, if you haven’t already I would speak to them, rather than your local USS pension team.

Failing that I would email them and ask for an explanation as to why the difference in quotes, when I did that they explained the difference in scenarios.

FIREmenow

ER Factors also worsened around 2022/23.

The one-off uplift of £215 pension and 

£645 lump sum was added to member’s CARE accrual in the 2023/2024 scheme year so I don't think it applies to the OP who is 10 years deferred.

There is a thread here that discussed the changes to factors as the occurred, particularly the last few pages : https://forums.moneysavingexpert.com/discussion/6287299/uss-options-options-options-what-to-do

Also here: https://forums.moneysavingexpert.com/discussion/6502791/uss-erfs?utm_source=community-search&utm_medium=organic-search&utm_term=uss+factors

I've just found a long Twitter thread from one of the UCU negotiators in early May. It mentions a commitment to honouring quotations given before 4 Jan which I don't think I've heard mentioned anywhere else. 

https://twitter.com/cupofassam/status/1786333947493748937?t=KYK3SlJlbYq3ZmwAlpj6lQ&s=1

Are you planning to commute some pension into lump sum? Those factors have also worsened from 1 April and that was not postponed until October.

MPLMPL

"I received a statement recently with a quote for retirement for July 2024 and the estimate was considerably less than expected/predicted from quotes in previous years (it was less than the quote for retirement in May 2023)."

I suspect it is the ERF changes as mentioned by earlier posters. How recent was the quote? If before April I suspect the new (now delayed until October) ERFs may have been used. I asked for and received a quote later in April once the delay to implementation became public, this quote (for 30th September retirement) used the correct current ERFs, not the ones that will now become effective from October.
Another thought: the last change to ERFs was 1st April 2023, these were not as generous as the previous 3 years, but not as bad as the Oct 24 ones. Could your May 2023 quote have used pre-April 2023 ERFs? Depends when you put in the request.

RSTime

I asked for the quote in April and was dated 18th April 2024. 

What I don't understand is why the online modeller is showing a different value to the statement (and also showed what i was expecting). I guess the message is to take my pension before October once they have fixed the statement.

I am unimpressed by the lack of communication with deferred members...

swindiff

The lack of communication is just as bad with current members

RSTime

I received an email from USS that stated "There is no statutory duty on trustees to notify members of a change to actuarial factors and we cannot provide financial advice. "

I had a long call with someone from USS this afternoon and they are going away to investigate. I will update with the outcome.